Intel Acquires TI's Cable Modem Unit

Aiming to strengthen its modem products for the cable industry and related consumer electronics devices, microprocessor giant Intel Corp. has signed an agreement to acquire Dallas-based Texas Instruments’ (News - Alert) cable modem product line. Financial terms of the transaction were not disclosed. However, the agreement is subject to regulatory review and customary closing conditions. Intel (News - Alert) expects the deal to close in the fourth quarter.

TI accepted Intel’s offer because it was in the best interest of the cable modem unit to pursue digital home space, said a spokesperson for TI. TI saw a synergy between the cable modem group and Intel’s digital home group, added TI’s spokesperson.

Said Bob Ferreira, general manager, Cable Segment, Intel’s Digital Home Group, in a statement, “Adding the talents of the Texas Instruments’ cable team to Intel’s efforts to bring its advanced technology to consumer electronics makes for a compelling combination.” “Intel is focused on delivering SoCs that provide the foundation for consumer electronics devices such as set top boxes, digital TVs, Blu-ray* disc players, companion boxes and related devices. This acquisition specifically strengthens Intel’s product offerings for the continuum of cable gateway products and reinforces Intel’s continued commitment to the cable industry,” added  Ferreira.

With this acquisition, Intel plans to combine TI’s  best-of-breed Puma product lines with the Data Over Cable Service Interface Specification (DOCSIS) standard technology and Intel’s system-on-a-chip (SoCs) capability to deliver advanced set-top box, residential gateway and modem products for the cable industry. The objective is to provide cable OEMs with an open and powerful platform for delivering innovative and differentiated products to service providers that improve the video, voice and data content experience at home, stated Intel.

According to Intel, all 40 employees of TI’s cable modem team received offers to join Intel at sites in their home countries, primarily Israel. The unit will become part of Intel’s Digital Home Group.

Historically, TI’s Puma family of cable solutions has been the first to comply with the latest DOCSIS 3.0 standard, which has been optimized for triple play (video, voice and data) applications as well as next generation IP services like IPTV (News - Alert).